Man linked to S$3 billion money laundering case admits to filing false tax information to IRAS

From 2018 to 2023, he was employed by his own company, LW Business Consultancy, as a corporate service provider.

The consultancy provided clients with corporate secretarial, accounting and taxation services. It also helped clients apply for and renew employment and dependant passes.

Among its clients were the companies linked to Su Baolin and Su Haijin.

From 2018 to 2023, Wang acted as the corporate secretary and director of Xinbao Investment Holdings, a company where Su Baolin was a director. From 2018, Wang’s firm charged Xinbao Investment Holdings S$7,500 a year for its services.

Between 2018 and 2023, Wang was also appointed company secretary and director of Yihao Cyber Technologies, where Su Haijin was a director. Su Haijin told Wang that he would be “just a nominee director” and uninvolved in the company’s operations.

He helped Su Haijin prepare financial statements for financial years 2019 to 2022.

On the books, Yihao Cyber Technologies developed software and applications, but investigations later revealed that it did not have a legitimate business operation in Singapore.

LW Business Consultancy charged Yihao Cyber Technologies S$1,000 per month from 2020, and a few hundred dollars a month from 2018 to 2019. The firm also helped Su Haijin renew his employment pass and his family’s dependant passes.

FALSE INFORMATION SUBMITTED TO IRAS

Investigations revealed that from 2020 to 2022, Wang and Su Haijin conspired to submit false information to IRAS about the company’s finances.

Wang filed tax returns that falsely reflected the company’s revenue, gross profits and trade receivables, despite knowing that the figures were not derived using proper accounting methods.

In one filing made in October 2022 for the company’s 2021 financial year, Wang declared that Yihao Cyber Technologies had revenue of S$804,969 and gross profits of the same amount. He indicated that the company’s total income or loss before donations was S$192,924 and the total income or loss after donations was a negative S$102,700. The figures resulted in an estimated tax liability of zero.

He knew that Yihao Cyber Technologies had no genuine source of revenue in Singapore and did not employ any staff here.

“The accused admitted that he calculated the figures ‘in any way’ he wanted, as long as his client … approved the final figures. The accused did not conduct any further due diligence on the company,” the prosecution said.

The false representations to IRAS were intended to make Yihao Cyber Technologies appear profitable, as Su Haijin believed this would improve his chances of obtaining permanent residency in Singapore.

Wang also made false representations to the Ministry of Manpower to support Su Haijin’s employment pass renewal application.

Wang will return to court for submissions on mitigation and sentencing on Jul 16.